TSLA Tumbles 18% in Worst Week Since 2022 as Reddit Digests Margin Calls and AI Spending Concerns

Tesla stock plunged 18% in a single week, its worst since 2022, after Q2 earnings revealed shrinking margins and massive capex plans.
Reddit discussion centered on Wall Street margin calls tied to the AI stock sell-off, with
$TSLA caught in the broader tech downturn.
Samsung confirmed it has secured 2nm AI chip orders from Tesla for HBM5 production, signaling continued demand for Tesla's AI infrastructure.

Tesla stock suffered its worst weekly decline since 2022, falling 18% as investors reacted to the company's Q2 earnings report. Despite trailing-12-month revenue exceeding $100 billion, operating margins shrank to 1.4% and free cash flow turned negative at $1.1 billion. The sell-off was compounded by CEO Elon Musk's ambitious spending plans, including $25 billion in capex for the year and plans to borrow up to $30 billion for robotaxi and Optimus robot development.

Reddit Reacts to Margin Calls and AI Turmoil

On r/wallstreetbets, a post detailing how Wall Street banks are issuing margin calls to hedge funds as AI stock collateral erodes gained 962 upvotes and 108 comments. The post noted that even professional investors got caught up in the AI rally at its peak, with Goldman Sachs and JPMorgan telling hedge funds to post more collateral. While not directly about

$TSLA, the broader AI sell-off has dragged down all mega-cap tech stocks, and Tesla's heavy AI spending plans make it particularly vulnerable to this sentiment shift.

Despite the weekly drop,

$TSLA maintained a positive sentiment score of 0.215 on Reddit, with 344 comments and 2,118 upvotes across 12 posts. The stock jumped 89 spots in Tendie.bot's ranking, suggesting that retail investors are closely watching the narrative around Tesla's AI and robotaxi ambitions.

Samsung's HBM5 Order Signals Continued AI Demand

On r/stocks, a post about Samsung's HBM5 production plans highlighted that the company has secured 2nm AI chip orders from major clients including

$TSLA. Samsung targets a 50% speed boost over HBM4E using a 2nm process with GAA structure. This news provides a counter-narrative to the bearish sentiment: Tesla's AI infrastructure investments are attracting supply-chain commitments from major semiconductor players, suggesting that the company's long-term AI ambitions remain credible despite near-term margin pressure.

Options Activity: Covered Calls on TSLA Showed Outperformance

A detailed backtest posted on r/options compared covered-call strategies against buy-and-hold for the Magnificent Seven stocks over two years. For

$TSLA, rolling 2-week 20-delta covered calls actually beat buy-and-hold, making it one of only two stocks (alongside NVDA) where the strategy outperformed. This finding resonated with options traders who see Tesla's high volatility as an opportunity for premium collection, especially during periods of elevated uncertainty like the current sell-off.

TSLA

The broader market context adds headwinds: Ford announced it will achieve point-to-point autonomy by 2028, threatening Tesla's robotaxi dominance, and Michael Burry disclosed short positions in Tesla. Meanwhile, hybrid vehicle sales surged 9% while EV sales dropped 24%, and only two Magnificent Seven stocks are beating the market this year. Tesla's path forward hinges on whether its massive AI and robotaxi investments can translate into commercial returns before competition erodes its first-mover advantage.

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